OG was kind enough to forward a flashalert over this way:
(Salem) -- The Oregon Department of Consumer and Business Services, Division of Financial Regulation announced today that it has issued an order of supervision to Moda Health Plan, Inc., because of concerns over its financial condition. At the same time, the department will begin working with Moda to transfer its individual market plans to another carrier.
An order of supervision allows the department to have a representative on site and in control of all financial decisions to ensure that consumers are protected. The order prohibits Moda from issuing new policies or renewing current policies in the individual market, and from adding new groups. The order also requires the company to obtain sufficient capital and present a business plan to DCBS that clearly demonstrates that it can operate in sound financial condition going forward. The supervision order is available at http://www.cbs.state.or.us/external/ins/admin_actions/actions_2016/insurer_2016/financial_2016/other_2016/16-13-001.pdf.
The department took this action because of Moda's excessive operating losses and inadequate capital and surplus. Capital and surplus is the amount a company's assets exceed its liabilities. The required minimum increases as the company assumes more insurance risk.
"Our primary goal is to ensure consumers are protected," said Patrick Allen, director of the Department of Consumer and Business Services. "We will continue to work closely with the company to find a sustainable path going forward while minimizing risk to consumers."
The order became effective late yesterday; however, Moda's insurance policies may still appear on HealthCare.gov through the end of open enrollment, Sunday, Jan. 31. DCBS advises consumers still shopping for plans to choose a carrier other than Moda. In the event that Oregonians already enrolled with Moda need to switch plans, there will be a special enrollment period. In the meantime, Moda policyholders can continue to access medical services and get their claims paid.
DCBS, which also runs the Oregon Health Insurance Marketplace, will keep Moda customers apprised of new developments and actions they may need to take.
As of Sept. 30, 2015, Moda enrolled a total of about 244,000 Oregonians in the commercial market, including 95,000 in the individual market, 16,000 in the small group market, and 129,000 in the large group market. Moda also has members in the associations and trusts market.
In related news, Alaska followed Oregon yesterday in banning Moda from accepting new or renewal policies in the state. As Moda was one of only two insurers operating there, Alaska has effectively handed Blue Cross/Blue Shield a monopoly in the health insurance market.
The Oregon Department of Consumer and Business Services said its supervision order calls for the company to obtain sufficient capital and to present a business plan that demonstrates Moda can operate in sound financial manner into the future. The business plan is due by Friday.
This Moda thing is now exploding in spectacular fashion: having pulled out of Washington and California, Moda was operating in only Oregon and Alaska, and now both have ordered them to cease operations and transfer policies for individuals to other carriers. For the time being, they're permitted to continue providing group coverage - but only to groups already enrolled; no new ones can be added. And it appears that Congress-critters are also getting involved.